Does the Guaranty and Assumption of Obligations for Focalpoint Coaching include a confidentiality clause?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS NONDISCLOSURE AND NON-COMPETITION AGREEMENT (this |
|---|
| "Agreement") is made as of the |
| day of, 20, is executed by |
| ("Individual," "me," or "I") for the benefit of |
| a |
| Nevada |
| corporation |
| ("Company"), |
| and |
| for |
| FOCALPOINT |
| COACHING, |
| INC., |
| , a/an ("Franchisee"). |
| Franchisee is a franchisee of Company pursuant to a franchise agreement entered into by |
| those parties concerning a business operating, or to be operated, under the "FocalPoint" name at |
| (the |
| "Franchise |
| Agreement"). |
| The |
| franchised |
| business |
| Company authorizes Franchisee to operate under the Franchise Agreement is known as the |
| "Business," which Business is one among all businesses that Company owns, operates, or |
| franchises under the "FocalPoint" name. I agree that, unless otherwise specified, all capitalized |
| terms in this Agreement have those meanings ascribed to them in the Franchise Agreement. |
I agree that during the term of my employment by, ownership participation in, association with or service to Franchisee, or at any time thereafter, I will not communicate, divulge or use for the benefit of any other person, persons, partnership, proprietorship, association, corporation or entity, Company's proprietary and confidential information relating to the development and operation of FocalPoint Franchised Businesses, including but not limited to the following concerning FocalPoint Franchised Businesses: (1) site selection criteria; (2) training and operations materials and manuals; (3) sales, marketing and advertising programs and techniques; (4) client lists and records; (5) identity of suppliers, and knowledge of specifications and pricing for products, materials, supplies and equipment that Company authorizes; (6) knowledge of operating results and financial performance of businesses in the network, other than those franchised businesses that Franchisee owns; (7) computer systems and software programs; and (8) any and all other information Company provides to me, Franchisee, Franchisee's Owners or Affiliates that is designated orally or in writing as proprietary or confidential, or by its nature would reasonably be understood to be proprietary or confidential, regardless of whether such information is specifically designated as proprietary or confidential (collectively, all information referenced above, including examples (1) through (8), is known as the "Confidential Information").
Furthermore, any and all information, knowledge, know-how, techniques and information which the entities mentioned above (or their officers) designate as confidential is considered, and hereby acknowledged by me, to be Confidential Information for the purposes of this Agreement, except information which I can demonstrate came to my attention before disclosure or which had become or becomes a part of the public domain through publication or communication by others (unless the publication or communication violates a similar confidentiality agreement), but in no event through any act of mine.
I specifically understand that, without limitation, all the above items, concepts, and/or examples contained in the preceding paragraph constitute Confidential Information of Company, and I will not divert any business to competitors of Franchisee and/or Company. I will at no time copy, duplicate, record or otherwise reproduce any of the Confidential Information or material containing it, in whole or in part, store them in a computer retrieval or database, nor otherwise make the them available to any unauthorized person.
I further agree that, during the term of my employment/service/association or ownership participation, I will not, directly or indirectly, engage or participate in any Competitive Business (defined below in this paragraph), any of which such prohibited behavior I understand and hereby explicitly acknowledge would or could be injurious to, or (in Company's sole judgment) have an adverse effect upon, Company's protectable interests in the Confidential Information, the "FocalPoint" trademark or related Marks, or the goodwill and/or reputation of FocalPoint Franchised Businesses generally. I agree that, unless Company provides prior written consent in its sole discretion, I am prohibited from engaging in any Competitive Business as a proprietor, partner, investor, shareholder, director, officer, employee, principal, agent, advisor, or consultant. For purposes of this Agreement, a "Competitive Business" means (i) any business which derives more than twenty percent (20%) of its revenue from selling business training or business consulting services and/or selling or offering products similar to those offered or sold by the Business; or (ii) grants franchises or licenses to others to operate the type of business specified in the preceding subparagraph (i) (other than a FocalPoint Franchised Business operated under a franchise agreement with Company).
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
Based on the 2025 Focalpoint Coaching Franchise Disclosure Document, the Guaranty and Assumption of Obligations agreement does include a confidentiality clause. This clause restricts the guarantor from disclosing or using Focalpoint Coaching's confidential information for their own benefit or the benefit of others, both during and after their association with the franchisee. This obligation extends to various types of information related to the Focalpoint Coaching business. This includes, but is not limited to, site selection criteria, training materials, sales and marketing techniques, client lists, supplier information, operating results, and computer systems.
The agreement specifically defines "Confidential Information" as any information provided by Focalpoint Coaching that is designated as proprietary or confidential, or that would reasonably be understood to be proprietary or confidential. The guarantor acknowledges that this information is confidential and agrees not to copy, duplicate, or reproduce it in any way, nor make it available to unauthorized persons. There are exceptions for information that was already known or has become public knowledge through no fault of the guarantor.
The guarantor also acknowledges that the provisions of the agreement, including the confidentiality obligations, are essential to protecting Focalpoint Coaching's interests in the franchise system, its clients, confidential information, and goodwill. The agreement aims to prevent both direct and indirect competition, including consulting for or assisting competitive businesses. The guarantor's obligations continue for two years after the termination of their relationship with the franchisee or Focalpoint Coaching, especially if a breach occurs and enforcement is sought.
For a prospective Focalpoint Coaching franchisee, this means that anyone signing a Guaranty and Assumption of Obligations agreement (often a spouse or business partner) will be legally bound to protect the confidentiality of Focalpoint Coaching's proprietary information. This is a standard practice in franchising to safeguard the franchisor's business methods and trade secrets. Failure to comply with these confidentiality obligations could result in legal action and financial penalties.